Friday, 17 February, 2012profit.com.pk

KARACHI

ISMAIL DILAWAR

N aTIOnaL accountability bureau(nab) has initiated criminal inquiriesagainst unscrupulous brokers atkarachi Stock Exchange (kSE), said a

joint statement issued here by nab and kSE.according to sources, nab had started toinvestigate on the directives of Supreme Courton the petition of aman Siddiqui, an official ofthe bank of america in Pakistan. Siddiqui issaid to have filed financial claims of Rs1.5to Rs20 million against Munir M Ladhaof the Eastern Capital Limited. also,the investigators are grilling the kSEmanagements who were in charge ofthe kSE board in 2008, 2009 and2012. Those under investigation areformer managing directors, adnanafridi and kamran Mirza, andelected directors like Suhail Diyala,Shoaib Memon, shehzad Chaira andothers, said the sources.However, a joint statement issuedby nab and kSE Thursday saidthe inquiries were to takeimmediate action against fiveformer brokerage houses, includingEastern Capital Limited, ClicktradeLimited, Capital One Equities, MkaSecurities, Prudential Securities Limited,and their accused directors on charges ofcheating the public at large.“DG nab (Sindh) and his team also held ameeting with the former chairman andmanaging director of kSE for the year 2008,”said the statement.In this regard, a nab team, comprisingDirector General Sindh Major (R) Shabbirahmed, Ghulam Farooq, Director (FCIW),ahmed Raza Tahir, Deputy Director, Qudsiakadri, Consultant (FCIW) and Rizwan Shah,Investigation Officer, visited the kSE onThursday and met the current management ofthe Exchange.The kSE officials, who met the nab team,included Chairman Muneer kamal, ManagingDirector nadeem naqvi, Deputy ManagingDirector Haroon askari, Directors Haji GhaniHaji usman, Yasin Lakhani and others.“The main focus of the meeting wasproblems being faced by investors and theclaimants of Eastern Capital and itsabsconded directors namely, Munir M Ladhaand others,” said the statement.

During the meeting, DG nab said the abovebrokerage houses were alleged to be involved inembezzlement and fraud activities by cheatingthe public hard-earned money through misuse oftheir securities, held in trust with them.He said

Chairmannab admiral (R) Fasih bukhari had taken aserious note of the misappropriation of funds ofthe people, who had invested their money withsome unscrupulous brokers of kSE and directedthe nab (Sindh) to take immediate actionagainst the said brokers and recover theembezzled amounts.ahmed clarified nab was not aimed atdisturbing and hurting overall businessactivities of kSE, but to deal with the actualculprits strongly.He, in this regard, desired to have close contactwith kSE to address the existing issues and tocreate deterrence for avoiding any suchunfortunate situation in future.Explaining in detail the structure, role andfunctioning of the Exchange, the kSEmanagement assured the investigators of their

full co-operation and also explained some of thereasons of 2008 market crisis.The reasons, procedure and subsequentactions to satisfy the investors’ claims againstdefaulted and expelled members of the Exchangewere also explained in detail.It was also informed that the limit of permember Investors’ Protection Fund was firstincreased from Rs10 million to Rs25 million andwas recently increased again to Rs75 million,

the benefit of which would be passed on to allclaimants against the members

defaulted/expelled post 2008 crisisretrospectively. This includes the cases

being investigated by nab.after detailed deliberations, thenab officials and kSE boardjointly agreed to extend activecoordination and support to eachother to eradicate corruption andcorrupt practices conducted bysome of kSE formerunscrupulous members.The kSE board also assured tokeep nab on board for any

malpractices, which take place inthe sector under their

purview as well as to help nab inmoney recovery.

DG nab appreciated the board’s activecooperation and stated that such

measures would help in improvingthe credibility of kSE as an

institution and its members.He further recommended

certain measures to beconsidered by kSE

board, withparticular

referenceto

exercisingdue cautionwhile admittingsomeone as memberof the Exchange andsupporting nab’s actionsfor future deterrence.It was resolved by both theinstitutions to fully collaborateby utilising available synergies inaddressing the grievances ofaggrieved investors.

Bulls on parade to propel KSE up93 points Page 3

LAHORE

STAFF REPORT

EvEn though the country has ashortage of natural gas, but thegovernment is still aggravatingthe situation by its involvement

in politics, since elections are just roundthe corner. If the government ensures a 10and a half month gas supply to fertiliserindustry, urea price could be fixed atRs1,300 per bag.These observations were made by formerSui northern Gas Pipelines Limited(SnGPL) Managing Director abdulRasheed Lone. He was giving briefing tothe members of the agriculture journalistassociation (aja) on gas distribution andfertiliser industry here on Thursday.Rasheed Lone, who is now associated witha local fertiliser manufacturing company,

underscored that the government wasobliging its blue-eyed people by awardingthem imported urea quotas at subsidisedrates, which had no benefit to farmers andthe country. He pointed out due to gascurtailment to fertiliser plants and ill-conceived government policies, urea pricein the country had swelled by 140 per centduring the last two years.Speaking on the occasion, another fertilisercompany CEO ahmed jaudet bilal pointedout local fertiliser manufacturing plantshad been forced to shut down for over sixmonths last year, causing acute ureashortage and subsequent unprecedentedprice increase from Rs750 in December2009 to Rs1,810 per bag as of today.In addition, the government had imposedtwo different types of taxes, which included16 per cent General Sales Tax (GST) andGas Infrastructure Development Cess

(GIDC) of 193 per cent. bilal pointed outthat only the cess had an impact of Rs258per bag on urea manufacturers, butindustry was passing 50 per cent of thisimpact to farmers. and both of these taxeshad an accumulated impact of Rs384 perbag in current urea price, he added.bilal further indicated Pakistan had 6.9million tonnes of urea manufacturingcapacity, which made it the seventh largesturea manufacturing country in the world.Despite the fact that the country had twomillion tonnes of surplus ureamanufacturing capacity, Pakistan hadimported $783 million urea in 2011. Inaddition, the government wasted Rs54billion on subsidising imported urea tomake it affordable, he lamented.He highlighted fertiliser industry hadinvested $2.3 billion to make the countryself-sufficient in the last three years, but

the government was still interested toimport fertiliser by curtailing natural gas tourea plants. In the whole scenario, he said,farmers were real losers as they had toincur a loss of Rs127 billion due to ureaprice increase. Drawing a comparisonamong various sectors of the economy,bilal emphasised fertiliser industry was theonly sector that was adding value to eachmolecule of natural gas as it used gas toconvert it into key input for agricultureinstead of burning this precious fuel. Heindicated maximum value addition ofnatural gas was in fertiliser sector incomparison to other sectors, includingindustries, power generation and CnG.These sectors had other substitutesavailable, like furnace oil, LPG, LnG, dieseland coal, whereas, fertiliser industry hadno alternative available, he maintained.He said natural gas was transformed

through a chemical process into fertiliser,which was used for good output of crops;hence it had a direct impact on agricultureeconomy, food security, cotton production– and ultimately supplementing textileexports. besides production of wheat, mainstaple food also played a role in producingthe feed for millions of livestock in thecountry. Referring to a report prepared byInternational Resources Group for asianDevelopment bank and ministry ofplanning and development, he pointed out,“The System Level Economic valuation”indicates that reducing gas to the fertilisersector costs the economy Rs196 million perMMCFD, while increasing gas to the powersector costs the economy Rs98 million perMMCFD.” Hence, government could saveup to Rs23 billion by supplying gas tofertiliser sector as compared with powersector, he concluded.

Punjab Seed Council approves cotton varieties

LAHORE

STAFF REPORT

Punjab Seed Council has approved 18 cottonvarieties for cultivation in Punjab. 42nd meeting ofPunjab Seed Council was held at agriculture House,

Lahore chaired by Malik ahmad ali aulakh, Minister foragriculture, Punjab. The meeting was attended by SumairaSamad, additional Secretary (Planning) agricultureDepartment Punjab, Managing Director, Punjab SeedCorporation, Director General agri (Research), DirectorGeneral agriculture (Extension) representatives of nIab,nIbGE, Federal Seed Certification and RegistrationDepartment, Pakistan Cotton Growers association,aPTMa, PCGa and cotton growers. The proposals of 26varieties of bT cotton/non-bT varieties evolved by researchinstitutions of the Government and private sector werepresented in the meeting. While discussing andconsidering for approval, the breeders of bT varietiespresented the case of their varieties for approval byhighlighting trial results and performance of the candidatevarieties and their characteristic. after discussing at lengthand keeping in view the data presented for candidatevarieties 4 new bT varieties FH-114, CIM-598, SITaRa-009 and a-one whereas, 4 new non-bT varieties bH-167,MIaD-852, CIM-573 and SLH-317 were approved forgeneral cultivation. Whereas, four bT varieties includingTaRZan-1, nS-141, IR-nIbGE-3, MnH-886 and 3 non-bT varieties nIbGE -115, FH-941 and FH-942 wereapproved for one year for field performance/monitoring ofthe varieties. The council also granted approval of three bTvarieties IR-1524, aLI akbaR-802 and nEELaM-121 aftercompletion of one year’s approval earlier. Eight varietieswere deferred by Punjab Seed Council. The minister foragriculture, Punjab congratulated the breeders of newvarieties and appreciated their contribution in agriculturesector. He said lion’s share of available resources is beingdiverted to develop agriculture on modern lines in theprovince as this particular sector is top priority of thegovernment to achieve self sufficiency and self reliance onsustainable basis. Talking to media men after the meeting,the minister said 80 new varieties of different crops havebeen approved during regime of present government since2008, whereas, only 49 were approved by previousgovernment during their five years tenure. He further saidthat wheat production of 19.04 million tonnes during2010-11 was achieved as compared to 15.60 million tonnesin 2007-08 which marked an increase of 18 per cent.Similarly bumper rice production of 3.38 million tonnes,record productions of 42.8 million tonnes of sugarcane,2.96 million tonnes of wheat and 3.34 million tonnes ofpotato were achieved during 2010-11. He added nowPunjab government has entered into certification regime toproduce fully traceable agricultural and livestock productsto reach high end markets of the developed world and toenhance exports for which Rs2.024 billion has been

allocated to improve supply chain of selectedagricultural and livestock products for improving

quality and introducing traceability as perinternational standards and requirements.

He urged the farmers to grow latest highyielding approved varieties to makecountry self-sufficient in agriculturalcommodities, paving way for increasing

agricultural exports for earning preciousforeign exchange.

NAB initiates inquiry against‘unscrupulous brokers’ at KSE

‘Govt involved in politics over natural gas’

Infographic by Babur Saghir

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news02Friday, 17 February, 2012

Banks jack up dollar reserves to $16.768bKARACHI: The country’s liquid foreign exchange reservesonce again moved northward due to increase in dollarholdings of the commercial banks, the central bank reportedThursday. according to State bank, up till February 10th, thecountry held $16.768 billion compared $16.689 billion of theprevious week. This shows a growth of $79 million or 0.4 percent over the last week. The State bank’s dollar reserves,however, moved downward and slid by $38 million or 0.3 percent to $12.286 billion against the previous $12.324 billion.The banks’ dollar reserves, a major stimulus for the country’stotal liquid reserves, registered an encouraging increase of$117 million or 2.6 per cent to stand at $4.482 billion against$4.365 billion of a week earlier. The analysts and the Statebank attribute contraction in the SbP’s exchange reserves, toincreased import payments and the repayment of thecountry’s external debts that, according to central bank, haveaggregated to over $60 billion. STAFF REPORT

PIA, Airbus sign aircraft agreementLAHORE: Pakistan International airline and airbus signed anagreement for transfer of ownership of Six a310 aircraft whichwere acquired by the airline on lease in year 2004. Transfer ofownership of the six aircraft to national Flag Carrier is anotherstep forward in implementing the business plan under vision2020 and will help PIa save about $2 million monthly rentalswhich will help greatly in reducing its losses. The agreementwas signed by PIa Managing Director nadeem khan Yousufzaiand airbus Director asset Management Patrice De Puymorinparticipated by PIa Deputy Managing Director Salim Sayani,Director Corporate Planning Irshad Ghani, airbus Sale DirectorMiddle East Othman Ghedira, vice President - InternationalDevelopment Middle East EaDS Pascal Lesaulnier and othersenior officials of PIa. PIa MD appreciating the efforts of boththe teams finalising the agreement said that PIa and EaDShave a long relationship. It started with the induction of a300-b4 in early 80’s and was strengthened further by the purchaseof a310 aircraft in 1991. aTR42-500, another product of sisterconcern of airbus both working under the umbrella of EaDShave added another knot to the ties. STAFF REPORT

LCCI to strengthen ties with Islamic countriesLAHORE: Lahore Chamber of Commerce and Industry(LCCI) Thursday won the help and support of Ministry ofForeign affairs (MOFa) over OIC ambassadors Roundtableto strengthen liaison and boost trade with all the Islamicbrotherly countries. a seven-member delegation led LCCIPresident Irfan Qaiser Sheikh and Senior vice Presidentkashif Younis Meher, former Presidents Shahid HussanSheikh, Mohsin Raza bukhari, bashir a buksh, ExecutiveCommittee Members Husnain Reza Mirza and Rehman azizChanmet additional Foreign Secretary Munawar Saeedbhatti in foreign office and handed him over the veryobjectives of the OIC ambassadors’ Roundtable and atentative schedule for the said moot. Director General OICMinistry of Foreign affairs ayaz Muhammad khan was alsopresent in the meeting. The LCCI delegation also presented aset of proposals for the formation joint business Council ofPakistan-China-Iran-Turkey and Russia. The other issuesdiscussed included signing of Currency Swap agreementwith OIC countries, early finalisation of gas pipeline projectwith Iran, Implementation of Preferential Trade and FreeTrade agreements with OIC countries, etc. STAFF REPORT

KARACHI

STAFF REPORT

aholding company is neededto be established in order toput back all loss incurringinstitutions of the country

within next five years. The lack of jobopportunities is alarming, as majorityof the country’s population is youthbased (below 25 years old). The coun-try needs to create jobs for the majorityof its population on war footings, saidShaukat Tarin, Former Federal Minis-ter for Finance and Economic affairsand presently advisor to Chairman,Silk bank Limited, while addressingPakistan’s Economic Roadmap Sum-mit here at a local hotel on Thursday.The one day summit was organised todiscuss Pakistan’s economic woes andsolutions to overcome them.

addressing the summit, Saadamanullah khan, President americanbusiness Council and Chief ExecutiveOfficer of Gillette Pakistan Limited, saidgood governance was the key to ensureeconomic growth as the improved gov-ernance leads to economicstability/growth, standard of living, lib-eral principles and also durable democ-racy. Talking about the challenges in thecountry, S M Muneer, President Pak-istan India Chamber of Commerce andvice Chairman, MCb bank Limited saidalmost 10 million people have lost jobsin Faisalabad due to the closure of in-dustries while over 30 per cent indus-trial units have been closed down

in karachi due to the energy crisis. Theenergy crisis and poor security in thecountry is also further minimising jobopportunities for the youth, he added.

Humayun bashir, vice PresidentOICCI and Country General Mangersaid there were immense opportuni-ties in the country to accommodatethe emerging youths. Only a call cen-ter training program could providejobs to over 0.5 million people.

nadeem Hussain, President andCEO Tameer Micro Finance bankLimited who made his presentationon the topic of ‘Self Reliance-Myth orReality’ said it was a myth that ‘reali-sation of self-reliance has becomeeven more difficult with the passageof time’. However, the reality wasthat Pakistan can attain self-relianceover a period of time by implementing

a strategy that aims at reducing thedependence on aid immediately andeliminating it over the time. It shouldemphasise on setting investment, sav-ings, imports and export targets con-sistent with self-reliance, withoutjeopardizing the growth prospects.

Expressing his views, Muham-mad azfar ahsan, CEO, nutshellForum said, “The aim and objective ofthis conference was to provide policymakers, trade, business and acade-mia, a roadmap with well definedmilestones to jump start Pakistan’seconomy. The idea is to focus on a fewquick wins with a medium term planin place to capitalise on the immensepotential of this country. We are opti-mistic that the existence and interac-tion of the key economic managers ofthe country, young and senior busi-

nessman, chartered accountants andtax specialists, academia and studentswill be an ideal opportunity to comeup with robust economic plan whichcan become a building block for thepolicies to be rolled out.”

Other renowned economists and fi-nancial sector experts also participatedin this summit and delivered papersand presentations on ways and meth-ods required to put the country’s econ-omy, back on track. These includednadeem naqvi (Managing Director,karachi Stock Exchange), Sirajuddinaziz(President and CEO, Habib Metro-politan bank Limited), Moin M Fudda(Country Director, CIPE), Majyd aziz(Chairman, SME bank Limited), Drasher Hasan (Founder and CEO, nayajeevan) and amina Hashwani (Presi-dent, Pakistan India CEOs Forum).

Pakistan’s Economic Roadmap Summit

LAHORE

STAFF REPORT

THE farming community hasurged the government to ap-prove the Genetically Modi-fied (GM) corn, which is

being planted successfully across theglobe, for commercial plantation inPakistan.

The farmers of corn growingareas made this demand during ameeting with senior officials of Mon-santo Pakistan, an agriculturalbiotechnology company. Monsantoofficials answered queries of farmers

and media representatives relating tobiotechnology, especially GM cornproduct ‘vT Double Pro’.

Monsanto experts said that thefield trials of Monsanto Pakistan’sGM corn product have been com-pleted successfully and now only offi-cial approval by the governmentauthorities was required to formallylaunch the product in Pakistan. Mon-santo Pakistan’s officials informedfarmers that the European Commis-sion has authorised GM maize, cot-ton, canola, soybean, sugar beet forfood/feed use.

They pointed out that corn seeds

had been genetically modified to haveagronomic desirable traits. Traits thathave been engineered into corn in-clude resistance to insect pests andherbicide tolerance, which means thatGM corn makes a protein that killsvarious insect pests without the use ofinsecticides. besides, it can also con-trol the losses caused by weeds.

a farmer Sabir Hussain said thatthey were failing to understand thedelay in giving approval to geneticallymodified crops. “Let these seeds enterthe market. If they don’t satisfy ourneeds, we will not buy them. but atlease farmers should have some

choice,” he added. another farmerRiaz-ul-Haq observed insect, pestsand weeds caused considerable lossesto corn crop. If GM corn was solutionto these problems, it should be intro-duced in the market forthwith. Hesaid that he wanted to test how thistechnology (GM corn) works.

Monsanto Pakistan was repre-sented by Muhammad asim, Regula-tory affairs Lead, Muhammad Ilyasnadeem, Commercial OperationsLead, Shariq bukhari, MarketingLead, Dr Muhammad naveed, Tech-nology Development Lead, and com-pany’s other officials.

Farmers urge govt to approve GM corn seed

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news

Friday, 17 February, 2012

03

CORPORATE CORNERSchneider Electric named DCIM market leaderLAHORE: Schneider Electric, a global specialist inenergy management, has been named a Market Leader inthe Data Center Infrastructure Management (DCIM)space by analyst firm IDC. The report, which details thecurrent climate and scope of the DCIM market, placedSchneider Electric in the highest category of MarketLeader when compared to a wide range of competitor’ssolutions. IDC’s report, IDC MarketScape: WorldwideDatacenter Infrastructure Management (DCIM) 2011vendor analysis,identifies the DCIM market as continuingto rapidly evolve with a number of vendors working toestablish themselves within the space. PRESS RELEASE

Italy keen on cementing ties with PakistanKARACHI: Italian ambassador to Pakistan Mr vincenziPrati said that his country was keen to strengthendiplomatic, economic, cultural and trade ties withPakistan.“We want to promote cooperation and friendshipwith Pakistan,” Mr Prati said while talking to journalists ata dinner that was hosted in his honour by Mr and MrsIrfan Ha vazeer, CEO of Finlays and President of ItalianDevelopment Council.Italian ambassador arrived inkarachi to participate in the dinner, karachi LiteraryFestival and Livestock Expo. Mr Prati appreciated thekarachi Literary Festival and Livestock exhibition sayingthat both these events were very impressive that elevatedthe image of Pakistan. PRESS RELEASE

PTCL brings back old Vfone chargesISLAMABAD: In line with its sustained efforts tofacilitate customers with value-added services,Pakistan Telecommunication Company Limited (PTCL)has reversed call set-up charges for vfone, bringingback the original rates. PTCL vfone’s call set-up chargeof Rs0.50 per call applied on dialing from vfone to On-net and Off-net in vfone Simple, Family andunlimited packages are being removed, with effectfrom today. PRESS RELEASE

Major Gainers

Company Open High Low Close Change TurnoverRafhan Product 2712.90 2848.54 2675.00 2808.20 95.30 75UniLever Pak Ltd. 5425.00 5489.00 5474.99 5485.20 60.20 8Nestle PakistanXD 3247.28 3319.00 3240.00 3259.14 11.86 21Island Textile 176.60 185.00 171.00 182.98 6.38 262Engro Corporation 121.77 127.85 119.00 127.85 6.08 5,261,570

Major Losers

Bata (Pak) Ltd. 746.42 720.00 711.00 720.00 -26.42 57Siemens Pakistan 835.60 855.00 821.00 821.16 -14.44 221Unilever Foods 1749.33 1749.33 1740.00 1740.00 -9.33 17Abbott Lab 95.88 93.50 91.09 91.59 -4.29 36,082Attock Petroleum 434.76 437.99 429.10 430.57 -4.19 59,759

Volume Leaders

Fauji Cement 4.62 5.06 4.70 4.98 0.36 22,910,482Jah.Sidd. Co. 9.27 9.48 9.01 9.17 -0.10 20,853,730Bank Al-Falah 12.83 13.13 12.85 12.95 0.12 15,763,494Lafarge Pakistan 2.25 2.42 2.25 2.36 0.11 11,785,161Azgard Nine 6.15 6.36 6.07 6.13 -0.02 10,669,758

Interbank RatesUS Dollar 90.7204UK Pound 142.2132Japanese Yen 1.1513Euro 118.0181

Buy SellUS Dollar 90.70 91.20Euro 117.29 118.31Great Britain Pound 141.44 142.57Japanese Yen 1.1415 1.1502Canadian Dollar 89.54 90.87Hong Kong Dollar 11.49 11.73UAE Dirham 24.63 24.79Saudi Riyal 24.13 24.26Australian Dollar 95.77 98.09

LAhORE: Mr Rizwan U Khan, General Manager Cola-Colawith Mr Omar Khayyam Shaikh, President ProgressiveEducation Network (PEN) and Mr Nadeem Babar,Chairperson PEN on the occasion of signing of agreementsto support government schools in Punjab. PRESS RELEASE

Bulls on parade, propel KSE up 93 points

KARACH

STAFF REPORT

O n Thursday the bulls domi-nated the karachi stock mar-ket again with trading

volumes closing higher and thebenchmark, kSE 100-share index,gaining 93.20 points.

The day saw the index closing upby 0.76 percent at 12,404.24 pointsagainst 12,311.04 points of Wednes-

day. “Pakistan stocks turned bullishamid higher volumes after recordearnings announcements Engro andrenewed institutional and foreign in-terest,” said ahsan Mehanti, a direc-tor at arif Habib Investments. Otherreasons, the senior analyst cited, as acatalyst at the kSE included strongearnings outlook in cements, oil andbanks, higher global commodities,positive political outlook after thegovernment and opposition joined

hands to push the national assemblyfor an interim setup and the restora-tion of law makers. This, the analystsaid, was despite concerns for theSupreme Court’s announcementsagainst the Prime Minister in thenRO implementation verdict.

The trading volumes at theready-counter were recorded higherat 205.56 million shares against172.08 million shares of the previousday. The trading value too surged to

Rs 4.717 billion compared to Rs3.055 billion of the previous session.The intraday high and low, respec-tively, stood at 12,418.32 and12,311.04 points. The market capital-ization modestly grew to Rs 3.233trillion from Rs 3.2 trillion a day ear-lier. Of the total 335 traded scrips,149 gained, 115 lost and 71 finishedas unchanged. The free-float kSE-30index also gained 82.89 points toclose at 11,572.02 points against theprevious 11,489.13 points.

Fauji Cement was the day’s vol-ume leader counting its traded sharesat 22.91 million with the opening andclosing rates, respectively, standingat Rs 4.62 and Rs 4.98. On the fu-ture market, the turnover in-creased remarkably to 7.946million shares compared to 5.297million shares of Wednesday.

KARACHI

STAFF REPORT

B OaRD of directors ofEngro corporation limitedhas announced theachievement of the com-pany’s highest-ever profit

after tax of Rs8.06 billion for theyear ended December 31, 2011.

The consolidated revenue stoodat Rs114.6 billion for the year endedDecember 31, 2011, as compared toRs79.9 billion in 2010. The com-pany announced Earnings per Share(EPS) of Rs20.50 for 2011, as com-pared to an EPS of Rs17.27 in 2010.a final cash dividend of 20 per cent(Rs2 per share) has been approvedby the board; making a total divi-dend of Rs6 per share for 2011.Theboard has also recommended the is-suance of 30 per cent bonus shares(3 shares for every 10 shares held).

FERTILISER

In 2011, the urea demanddeclined to 5.9 m tonnes (from

6.1m in 2010) due to reducedsupply on account of severegas shortage.

FOOD

In 2011, the food businessachieved volume growth of 22 percent in the dairy segment, securinga market share of 44 per cent asopposed to 39 per cent in 2010.

PETROCHEMICALS

The petrochemical business’sproduction was lower than capacitydue to limited availability of vCMand some operational constraints.However, by the end of the fourthquarter, the plant had overcomesignificant teething problems and isin better shape with vCM capacityutilisation up to 99 per cent.

ENERGY AND POWER

During the year 2011, the

energy business recorded itshighest dispatch of total netpower of 1,657 GWh to the na-tional grid as compared to 1,201GWh in 2010.

CHEMICAL STORAGE

The chemical terminal’s ac-tual throughput for the year was1,092 k tonnes versus 1,104 ktonnes in 2010. The de-crease in annualthroughput ismainly at-tr ibutableto lowerimport ofp h o s -p h o r i cacid, dueto lowerp r o d u c -tion ofDaP asa re-s u l tof gasl o a d

management by SSGCL.

OTHERS

The automation and controlengineering business registered aloss after tax of Rs169 million in2011 due to reverberating impactof the recession, where customersremained cautious with their capi-

tal expenditures. The secondissue of ‘Engro Rupiya

Certificates’ wascompletely sub-

scribed, raisingRs2.75 bn dur-

ing 2011.

Engro’s profits hit all-time high

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